Palantir Technologies Inc. has reached a new all-time high with its stock price, trading at $85 per share. This surge comes as the company approaches its earnings report scheduled for Monday. The stock has seen a 98% increase over the past three months, reflecting strong investor interest. However, financial analysts at Jefferies have reiterated an 'Underperform' rating on Palantir, setting a price target of $28, which suggests a potential 65% downside risk. This valuation critique is based on Palantir's current trading multiple of 50 times next twelve months' revenue, making it the most expensive software stock compared to its peers. The upcoming earnings report is anticipated to be challenging as Palantir faces tougher comparisons from the previous year. The company is currently valued at 60 times forward sales with a 25% revenue growth rate, and some analysts have noted its valuation at 73 times revenue, highlighting concerns about its high valuation relative to its fundamentals.